How will Rising Rates Affect our Market?

The Abilene real estate market had a strong start, but with interest rates on the rise. What can we expect from the rest of 2022? Here is your May market update! We continue to see a strong real estate market and Abilene throughout the first quarter with more sales, higher prices, and a slight increase in inventory. In the first quarter, we had 575 closed sales with an average price of $247,000. When comparing that to quarter one of 2021 that is an increase of around 50 closed sales and a $34,000 increase in the average price. That is a huge increase! But one cloud hangs over the market the rising mortgage rates. Yes, mortgage rates are on the rise at the start of this year rates were around 3.1% and they have steadily climbed. So nationally we are now seeing an average of about 5.1% for a 30-year fixed-rate mortgage. The biggest question that we are being asked is, what happens next? Tonya has your answer!